SHW is down after releasing preliminary sales and earnings results this morning that were weaker than expected. Q4 sales were up 2% vs guidance of up mid-single-digits. Sales were negatively impacted by architectural paints in the US, driven by weak results in October and November (they gave guidance on Oct 25). Architectural Paints consist primarily of the chain of paint stores which had SSS of +3%. Of that, 2.5% was pricing so volumes were flattish. Sales rebounded a little in December and continue to improve. Sales for Consumer Brands and Performance Coatings Groups also fell short of expectations. Performance Coatings was particularly weak in China. As a result of the revenue miss, adj. EPS for the full year is now expected to be $18.53 compared to guidance of $19.05 to $19.20. Street was at $19.11. Their quarterly call is on Jan 31.
$SHW.US
[tag SHW]
[category Equity Research]
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109